In Pursuit of Consumption-Based Forecasting

Today’s most mature, most sophisticated, best-in-class forecasting is what we call consumption-based forecasting (CBF). In contrast, the least-sophisticated companies typically do not forecast at all, but rather set financial targets based on management expectations. In pursuit of CBF, companies need to attend comprehensively to the areas of data, analytics, technology, processes and people. This article explores the traits and capabilities found in companies pursuing CBF.